The short term trend is in an Uptrend technically indicated by following:
• Break above the downtrend trend-line - Price is currently trading above the downtrend line, buy signal.
• Bullish Cross of MA10 above the MA20, buy signal.
• RSI > 50, bullish momentum.
Prices are trading above the support level at 1.3000.
Therefore, we will recommend LONG POSITIONS for the no position holders on USD/CAD. Take profit at 1.3350 – 1.3400 at the SMA200. Stop loss should be a bit below the support level-A, thus the stop loss is at 1.2950.
For LONG-holders we will recommend to HOLD their long positions and adopt the same stop loss and take profit orders as mentioned above.
For the short-position holders we will recommend them to CLOSE SHORT POSITIONS AND GO LONG (since they are trading against the short-term trend) and adopt the same limit and stop orders as mentioned above.
This strategy aims for yield-to-risk ratio of 5x which is good for money management purposes.
Otherwise, short buyers could enter the market in case of a daily close below the 1.2750.
• Break above the downtrend trend-line - Price is currently trading above the downtrend line, buy signal.
• Bullish Cross of MA10 above the MA20, buy signal.
• RSI > 50, bullish momentum.
Prices are trading above the support level at 1.3000.
Therefore, we will recommend LONG POSITIONS for the no position holders on USD/CAD. Take profit at 1.3350 – 1.3400 at the SMA200. Stop loss should be a bit below the support level-A, thus the stop loss is at 1.2950.
For LONG-holders we will recommend to HOLD their long positions and adopt the same stop loss and take profit orders as mentioned above.
For the short-position holders we will recommend them to CLOSE SHORT POSITIONS AND GO LONG (since they are trading against the short-term trend) and adopt the same limit and stop orders as mentioned above.
This strategy aims for yield-to-risk ratio of 5x which is good for money management purposes.
Otherwise, short buyers could enter the market in case of a daily close below the 1.2750.